Slide 1: Q3 2024 Financial Results and Strategic Update
Q3 2024 Financial Results and Strategic Update November 5, 2024
Slide 2: Forward-Looking Statements and Use of Non-GAAP Measures
Forward-Looking Statements and Use of Non-GAAP Measures This presentation contains “forward-looking statements” including within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included in th
Slide 3: Financial Results and Strategic Update
Financial Results and Strategic Update Strong financial results and continued focus on strategic initiatives Delivering Strong Financial Results • Third Quarter 2024 breakeven Net Income and Earnings Per Share – Decrease of $1.4 million or $0.09 per share relative to 2023 • Third Quarter 2024 Adjust
Slide 4: Corporate Sustainability and Responsibility Report
Corporate Sustainability and Responsibility Report Unitil recently released its 2024 report highlighting our accomplishments, initiatives and commitment to sustainability Advanced Mobile Leak Detection Indicated that the distribution system had significantly lower fugitive emissions than calculated
Slide 5: Advanced Metering Infrastructure
Advanced Metering Infrastructure Upgrading metering infrastructure to optimize system utilization and customer end use Customer Environmental Improved Reliability Smart Meters Enhanced Billing Empowerment Sustainability Faster outage detection Real-time data & Streamline and response stronger decisi
Slide 6: Third Quarter 2024 Financial Results
Third Quarter 2024 Financial Results Net Income and Earnings Per Share Three Months Ended Nine Months Ended Higher earnings reflect higher distribution rates and Earnings Summary(1) customer growth partially offset by higher utility operating September 30 September 30 costs 2024 2023 2024 2023 Adjus
Slide 7: Volume and Adjusted Gross Margin Variances
Volume and Adjusted Gross Margin Variances Year-to-Date variances in units, customers, and adjusted gross margin Electric Operations Unit Sales and Customers • ~100% of electric customers decoupled(2) Weather Normalized Unit • Weather normalized C&I sales increased 1.4% Adjusted Gross Margin(1) Cust
Slide 8: Year-to-Date Earnings Reconciliation
Year-to-Date Earnings Reconciliation Variances to prior period Net Income • Adjusted Gross Margin(1) increased $10.8 million as a result of higher rates and customer growth. • Operation and Maintenance Expenses increased $1.1 million due to higher labor costs of $0.9 million and higher utility opera
Slide 9: Granite State Gas Transmission Settlement
Granite State Gas Transmission Settlement GSGT rate case should provide opportunity to earn a fair return over the term of the settlement Granite Rate Case Highlights GSGT Return on Equity(1) • Filed uncontested rate case settlement with FERC 14.0% requesting approval by November 25, 2024 for rates
Slide 10: Bangor Natural Gas Transaction
Bangor Natural Gas Transaction Attractive tuck-in acquisition complements Unitil’s existing natural gas operations in Maine Company Overview Projected 2024 2025 Procedural • Fully regulated gas distribution company serving approximately 8,500 natural gas Schedule customers in the greater Bangor regi
Slide 11: Capital Investment Opportunities
Capital Investment Opportunities The energy transition offers robust long-term investment opportunities Actual and Forecast Capital Investment(1) Consolidated Rate Base Five-year projected capital investment of ~$910 $1,200 Electric Rate Base Gas Rate Base million, 47% higher than prior five years $
Slide 12: Balance Sheet Strength and Financing Plan
Balance Sheet Strength and Financing Plan Strategic financing plan continues to support balance sheet strength • Capital investments funded principally by Cash Flow From Long-Term Financing Sources Operations • Limited refinancing risk and no variable rate long-term debt • Closed $135 million long-t
Slide 13: Key Elements of Unitil's Value Proposition
Key Elements of Unitil’s Value Proposition Delivering consistent results through a reliable, regulated strategy 8%-10% Expected Annual Total Shareholder Return (1) 5%-7% 6.5%-8.5% $910 million 55%-65% 17%-19% Cost Net Zero Expected Annual EPS Growth Expected Annual Utility Rate Base Growth Planned E
Slide 14: Appendix
Appendix Slide 15 About Unitil 16 GAAP ROE 17 Rate Relief Summary 18 Investment Grade Credit Ratings 19 Fitchburg - Rate Case Award 86,600 Natural Gas Customers 20 Fitchburg - Performance Based Rates 21 10-Year Financial Performance 22 Long-Term Earnings Growth 23 Dividend Increase and Expected Payo
Slide 15: About Unitil
About Unitil Pure play New England utility creating long-term sustainable value Local distributor of electricity and natural gas in attractive service areas along the New Hampshire and Maine Seacoast • Fully regulated electric and gas operations • Growing customer base supported by strong regional e
Slide 16: GAAP Return on Average Common Equity
GAAP Return on Average Common Equity GAAP Return on Equity over the last twelve months Company Average Common Equity LTM ROACE (1) Northern Utilities $257 9.3% Unitil Energy Systems $127 8.7% Fitchburg Gas and Electric 86,600$129 9.8% Natural Gas Customers Granite State Gas $26 6.6% Unitil Corporati
Slide 17: Rate Relief Summary
Rate Relief Summary Successful regulatory strategy resulting in awards from both capital trackers and rate cases Company Activity Millions Date Effective Base Rate Case Increase $7.6 Q4 2023 Northern Utilities (Maine) Capital Tracker $2.4 Q2 2024 Grid Modernization $1.3 Q2 2024 Grid Modernization(1)
Slide 18: Investment Grade Credit Ratings
Investment Grade Credit Ratings Stable ratings across all subsidiaries from both S&P and Moody’s Issuer Rating S&P Moody’s Unitil Energy Systems Inc.(1) Stable / BBB+ Stable / Baa1 Northern Utilities Inc. Stable / BBB+ Stable / Baa1 86,600 Fitchburg Gas and Electric Light Co.Natural Gas Customers St
Slide 19: Order Received for Fitchburg Rate Cases
Order Received for Fitchburg Rate Cases Constructive outcomes in electric and natural gas cases Electric Order Highlights Gas Order Highlights • Rates effective July 1, 2024 • Rates effective July 1, 2024 • 9.4% Authorized Equity on Equity Ratio of 52.26% • 9.4% Authorized Equity on Equity Ratio of
Slide 20: FGE Performance Based Rates Overview
FGE Performance Based Rates Overview Capital trackers and Performance Based Rates should support opportunity to earn authorized ROE Performance Based Rates (PBR) Structure K-Bar Adjustment (Electric only) • Five-year PBR plan allows for timely cost recovery • The ‘K-Bar’ adjustment is included as pa
Slide 21: Recapping Financial Performance Over the Past Decade
Recapping Financial Performance Over the Past Decade Historical earnings growth at mid-point of long-term guidance Performance Over Last 10 Years Historical Earnings per Share (1) $3.00 7.7% Net Income 2.1x Net Income Annual Growth Compared to 2013 $2.50 $2.00 6.0% Earnings Per Share 1.8x EPS Annual
Slide 22: Maintaining Long-Term Earnings Growth
Maintaining Long-Term Earnings Growth Long-term growth expectation remaining in the range of 5% to 7%(1) $4.00 2024 Expectations $3.80 • 2024 earnings expected to be within long-term growth range • Decoupled margin provides stability and visibility – $3.60 over 80% of customers under decoupled rates
Slide 23: Dividend Increase and Expected Payout
Dividend Increase and Expected Payout Consecutive years of accelerated dividend rate increases Historical Dividend and Payout Ratio $1.75 100% $1.70 • Balancing dividend sustainability with capital 90% investment opportunities $1.65 $1.62 80% $1.56 70% • Expected dividend payout ratio to remain in $
Slide 24: Continuous Dividend Payment Since Incorporation
Continuous Dividend Payment Since Incorporation Steadily increasing dividend per share since 2015 Reliable Dividend is Key Tenet to Value Proposition $1.80 $1.60 $1.40 $1.20 $1.00 86,600 Natural Gas Customers $0.80 $0.60 $0.40 $0.20 $0.00 SLIDE 24
Slide 25: Key Regulatory Recovery Mechanisms
Key Regulatory Recovery Mechanisms Timely Rate Recovery Unitil Energy Fitchburg - Electric Fitchburg - Gas Northern - ME Northern - NH Revenue Decoupling Power/Gas Supply Supply Related Bad Debt Energy Efficiency Transmission Net Metering Credits 86,600 Sp
Slide 26: GAAP Reconciliation of Adjusted Gross Margin
GAAP Reconciliation of Adjusted Gross Margin Three Months Ended September 30, 2024 86,600 Natural Gas Customers SLIDE 26
Slide 27: GAAP Reconciliation of Adjusted Gross Margin
GAAP Reconciliation of Adjusted Gross Margin Nine Months Ended September 30, 2024 86,600 Natural Gas Customers SLIDE 27
Slide 28: GAAP Reconciliation of Adjusted Earnings
GAAP Reconciliation of Adjusted Earnings Three Months and Nine Months Ended September 30, 2024 86,600 Natural Gas Customers SLIDE 28